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5 Purchases You Didn't Know Were Tax Deductible 

Rebecca C Penner Accountant

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 Contact Rebecca today for a free consultation:  https://rcpenner.com/contact

 

Did you know that there are several purchases you can make throughout the year that are tax deductible? Here's a list of five common ones!

 

As a Canadian taxpayer, you may be eligible to deduct some of your expenses on your income tax return. This includes certain purchases that you might not have expected to be tax deductible.

 

Here are five items you may be able to claim:

 

1. Vehicle Expenses – You may be able to deduct certain vehicle-related expenses if you use your vehicle for business purposes. This could include things like fuel, maintenance, and insurance. *Please note: this deduction is in very specific situations where your employer requires you to do it and provide a T2200.

 

2. Union or Membership Dues – You may be able to deduct your dues on your tax return. Your accountant will require receipts.

 

3. Child Care Costs – If you have children, you may be able to deduct childcare expenses on your taxes.

 

4. Home Office Expenses – If you work from home and use part of your home for business purposes, you can deduct certain expenses on your taxes. This could include things like a portion of your mortgage or rent, electricity, and heating costs. *Please note: this deduction is in very specific situations where your employer requires you to do it and provide a T2200.

 

5. Moving Expenses – This deduction is for people who are required to move more than 40 km’s for work purposes. Click the link to see other deductions that may apply to you https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html

 

If you're wondering what other types of expenses you can claim on your tax return, don't worry! We've got you covered.

Rebecca C. Penner is a Chartered Professional Accountant with over 15 years of experience in income tax and accounting.

Contact Rebecca today for a free consultation to learn more about the deductions that may be available to you  https://rcpenner.com/contact

Thanks for reading, and we hope this information helps you save money on your taxes next year!

Thank you for taking the time read my blog.

Sincerely,

Rebecca C Penner CPA, CGA

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How Outsourcing CFO Services Can Help Your Business

  

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If you’re like most business owners, you are always looking for ways to save money and improve your bottom line. One way to do this is by outsourcing your CFO services. By doing so, you can get the benefit of having a financial expert on staff without paying the high salary and benefits that come with hiring a full-time CFO. In this blog post, we will discuss the benefits of outsourcing CFO services and how it can help your business grow!

 

What is an Outsourced CFO?

An outsourced CFO is an accountant or finance leader who provides top-tier finance, business, accounting, and operational guidance for your business on a part-time or full-time basis. You can use an outsourced CFO to be your interim for the duration of a project, during a busy season, or when you're experiencing high growth.

 

Outsourcing a CFO position can also help you with bookkeeping services budgeting, financial forecasting, raising capital, and more. Outsourced CFOs are experienced in working with businesses of all sizes across various industries. At Rebecca C Penner we offer great bookkeeping services, click the link:https://rcpenner.com/bookkeeping

If you're looking for expert advice and guidance to take your business to the next level, consider outsourcing your CFO.

 

Benefits of outsourcing CFO Services

 

There are many benefits to outsourcing your CFO services. Perhaps the most obvious benefit is that it can save you a lot of money. A full-time CFO can cost upwards of $200,000 per year, including salary and benefits. When you outsource your CFO services, you only have to pay for the services you need, when you need them. This can save your business a lot of money, which can be reinvested back into the business or used to improve your bottom line.

A great article from Globe News Wire, if you are curious to find out why outsourcing your CFO position might be for you: https://www.globenewswire.com/en/news-release/2022/06/29/2471535/0/en/Scale-Up-a-Small-Business-With-a-World-Class-Outsourced-Virtual-CFO.html

 

Outsourcing your CFO services allows you access to a wide range of talent and experience. When you hire an in-house CFO, you are limited to the skills and experience of that one individual.

 

If you’re interested in learning more about the benefits of outsourcing your CFO services, please don’t hesitate to contact Rebecca Penner at:https://rcpenner.com/contact   I would be happy to answer any questions you have and provide more information about how the services we provide.

Thank you for taking the time read my blog.

Sincerely,

Rebecca C Penner CPA, CGA

rebecca

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The Top 7 Benefits of Using Accounting Services

 

There are many benefits of using accounting services. Some of the top reasons include getting accurate and timely financial information, gaining an objective perspective on your business, improving decision-making ability, preparing for tax time, and more!

In this blog post, we will discuss each of these benefits in more detail. If you are considering hiring an accountant for your business, read on to learn more about why it is a wise decision!  https://rcpenner.com/contact

 

Rebecca C Penner

Book Your FREE Consultation: https://rcpenner.com/bookkeeping

 

 If you're a business owner, you know that keeping track of your finances is essential. But doing everything yourself can be time-consuming and overwhelming. That's where accounting services can help. Here are seven benefits of using an accountant:

 

1. Accurate and timely financial information:

An accountant can make sure your financial records are accurate and up to date. This is important for making sound business decisions and preparing your taxes.

2. Gaining an Objective Perspective:

An accountant can provide an unbiased view of your business finances. They can offer insights and recommendations to help you improve your bottom line.

3. Improving Decision-Making Ability:

Having accurate financial information is critical for making informed business decisions. An accountant can help you understand your financial situation and make smart choices about where to allocate your resources.

4. Preparing for Tax Time:

Tax season can be stressful, but an accountant can take care of all the details for you. They can ensure you’re taking advantage of all the deductions and credits you’re entitled to and help you avoid any penalties.

5. Saving Time:

An accountant can save you a lot of time by taking care of all your bookkeeping and financial reporting. If the accountant offers the service of bookkeeping. This frees up your time to focus on other aspects of running your business.

6. Peace of Mind:

Knowing your finances are in good hands can give you peace of mind. An accountant can help you avoid financial problems down the road and ensure your business is on solid footing.

7. Reducing Stress:

Dealing with money can be stressful, but an accountant can take some of the burdens off your shoulders. They can handle all the financial details so you can focus on running your company.

 

If you are looking for help with your finances, consider hiring an accountant. We can provide many benefits to your business. Don’t let your bookkeeping and accounting get you down, give me a call today and we can discuss how to move forward and bring you peace of mind. https://rcpenner.com/contact

 

Thank you for taking the time to read my article.

Don’t miss out on future blogs. Sign up to get them directly to your email inbox hot off the press.

Sincerely

Rebecca C Penner CPA, CGA

https://rcpenner.com/contact

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 Project Accounting: What is it and Does Your Company Need It

Project accounting is a type of managerial accounting. It is a system that helps businesses track, analyze, and report financial results and implications. By using project accounting, companies can ensure that they are making the most efficient use of their resources and that all aspects of each project are accounted for. In this blog post, we will discuss what project accounting is and how it can benefit businesses. Let's get started!

 

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Which Type of Businesses use Project Accounting

While project accounting was traditionally used for large construction, engineering, and government projects, it has now expanded into several other sectors including IT, non-profit organizations, and marketing. Project accounting is a specialized form of accounting that keeps track of the financial progress of projects.

 

What Do Project Accountants Do?

1.Monitor the progress of projects

2. Look into variances

3. Approve outgoing inclusive of expenses.

4. Ensuring that project billings are issued to clients and payments collected.

 

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Could Your Business Use a Project Accountant?

Project accounting is most commonly used in businesses that work based on contracts for unique projects, such as construction companies or advertising firms. Project accounting allows businesses to track revenue and expenses by project, in order to better understand the financial outcome of each project and make more informed decisions about where to allocate resources in the future.

 

Are you a construction company that is looking for a better way to track job costs? Or an agency that wants to improve the transparency of project billing? If so, then project accounting is definitely for you. Contact me today if you need any advice on where you need to go and what you should be doing to cost your projects properly.

 

As always thank you for taking the time to read my blog.

If you have any questions, please don’t hesitate to reach out.

Sincerely,

Rebecca C Penner CPA, CGA

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Bookkeeping: Month End and Year End Preparation

Every business owner knows that preparing month end and year end financials is important, but not everyone knows how to do it themselves. That's where bookkeeping comes in.

 

If you don’t have a bookkeeper, the below tasks can seem daunting and time consuming. It doesn’t have to be, you could hire out the service to a bookkeeping company like mine. This way you know your books will be taken care of and you will have one less thing to worry about.

 

Below are a few key items that need your attention each and every month. If you don’t have the time or you just don’t know where to start, please reach out. Leaving this very important part of your business until later really won’t cut it.

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Here are a few key tips to help you get organized

 

Month End Preparations:

 

• Start by reconciling your bank and credit card statements.

• Review your income and expenses for the month

• Compare your actual results to your budget

• Make any necessary adjustments

• Prepare your financial statements

 

Year End Preparations

• Record all Transactions

• Make sure your bank reconciliations are complete.

• Review your Financial Statements

• Check your AR and Invoices

• Check your AP

• Perform an inventory count

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Bookkeeping can be a daunting task, but our team of experts are here to help you every step of the way. We'll make sure your books are in order so you can focus on what you're good at - running your business.

 

Not only will we take care of all your bookkeeping needs, but we'll also provide you with insightful monthly and yearly reports so you can track your progress and see where your business is headed. Let us help you take control of your finances and achieve success.

 

Contact us today at https://rcpenner.com/contact , and will have you set up and running in no time.

 

As always thank you for taking the time to read my blog.

 

I truly hope it has helped.

 

Sincerely,

Rebecca C Penner CPA, CGA 

rebecca

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4 Ways to Improve Your Cashflow Management

 

Cash flow is the lifeblood of any business, large or small. Without a steady inflow of cash, it can be difficult to meet payroll, pay suppliers, and keep the lights on. That's why effective cash flow management is so important. Cash flow can be managed in a number of ways, but one of the most effective is through careful accounting. By tracking inflows and outflows of cash, businesses can get a better handle on their overall financial health. This information can then be used to make informed decisions about where to allocate resources. With careful planning and execution, businesses can ensure that they always have the cash on hand to meet their obligations.

 

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 Contact Rebecca at https://rcpenner.com/contact

Managing your cash flow can be difficult, but it's crucial to keep track of your income and expenses so you can identify trends, especially when your business depends on it. If you're having trouble staying on top of your spending, make a budget and stick to it. Or contact a professional like me. As an experienced cashflow management professional, I am able to help find leaks and show you how to create a way to manage your day-to-day finances properly.

 

The 4 ways we can Improve your Cashflow Management are as follows:

 

1. Understand your cash flow - track your income and expenses so you can identify trends.

2. Make a budget and stick to it - this will help you stay on top of your spending

3. *Delay payments where possible - if you can, pay bills and other expenses in installments rather than all at once. *note that only apply this method if you won’t be charged interest, or if you are that it is not a high interest rate. (Do not delay payments for credit cards).

4. Invest in a good, reputable Accountant to help you manage your finances more effectively.

 

Budgeting Tips

 

 

Improving your cashflow management can help you keep your business running smoothly. In order to be successful, business owners need to have a firm understanding of their cashflow. This includes knowing when money is coming in and going out, as well as how much money they have on hand. Improving your cashflow management can help you stay in control of your finances and make sure your company is always operating optimally.

 

And lastly, don't be afraid to ask for help when needed - there's no shame in admitting that you don't know how to do something and seeking guidance from someone who does. Need help managing your finances? Contact me today. I'd be happy to assist you! https://rcpenner.com/contact

 

As always thank you for taking the time to read my blog. I truly hope it has helped.

Sincerely,

Rebecca C Penner CPA, CGA

rebecca

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The Difference Between Budgets and Forecast

 

Do you own a business? If you answered yes, then this is an article you don’t want to miss. Business owners more often than not have little knowledge of where their company is in regard to their financial health. Meaning they have no idea if the company is doing well or not and if not what they will have to do to improve. This is where an accountant like me can help, with budgets and forecasts.

 

Budget Planning 

Contact me for a FREE consultation:https://rcpenner.com/contact

Budgets and forecasts are similar financial tools that accountants use to establish plans for a company’s future. These tools enable us to see what is happening now versus what can/will happen in the future, whether your company is in a good financial state or not. Then once this information has been gathered a plan of action is put in place.

 Do you know if your company is meeting your financial goals? If not, I can help you find this information. So, let’s look at the differences between a budget and a forecast and why you need to do both.

 1. A budget reveals the shape a company is in financially within the span of a year.

 2. A forecast uses past historical data to predict a company’s future financial outcomes.

The purpose of a company having a budget and forecast is to help strategize and plan for the future and align the company goals across the organization.

 Both budgeting and forecasting are very important components of every company’s growth. This is needed especially during periods of change within a company. Click the link for access to a free excel budgeting spreadsheet: https://best-excel-tutorial.com/59-tips-and-tricks/248-company-budget

 

Budgeting Tips

 

Below are 2 main reasons a budget is important:

 1. Budgeting is an important tool for decision making

 2. A great way to monitor business performance

 

2 main reasons forecasting is valuable to businesses:

 1. A forecast is able to help you make informed decisions.

 2. With these decisions you can then develop a strategy.

 

When you first open your business, it is vitally important that you know what your financial situation is. Hiring someone with the skill and expertise in finance is extremely important, especially if you don’t know anything about budgeting and aren’t able to forecast where the company will go in the future. This is when you will definitely need a professional in your corner to help guide you.

 As always thank you for taking the time to read my blog. I truly hope it has helped.

Sincerely,

Rebecca C Penner CPA, CGA

rebecca

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 Best Payroll Software for Small Businesses

 

Are you a small business that is looking for an easier way to process your payroll? Or are you looking to change your payroll software program to make this once timely part of your business easier? If you answered yes to any of the above questions, then you are in the right place. Keep reading.

 

Let’s define what a small business is considered to be in Canada, before we get into the best payroll software. The Treasury Board of Canada Secretariat defines a small business that has fewer than 100 employees or between $30,000 and $5 million in annual gross revenues as a small business.

 

 

PayrollThere are on average around 95,000 new businesses opened in Canada each year. With 98.9% of businesses being small to medium sized. And around 260 new companies are founded in Canada each day.

 

For each and every business, if and when they acquire employees a payroll software will be required.

 

The listed payroll systems below are the ones to look into, and are said to be the most popular systems that are being used to date in Canada:

 

Payworks – This payroll software program has HR and payroll functions to help you get your payroll out on time every time. The added bonus for this system is their user-friendly platform and customer service.

 

WagePoint – Their small business payroll software makes it easy to pay your employees and stay on top of your payroll taxes. This software company is also good if you have sub-contractors on your payroll.

 

QuickBooks – If you use QBO for your business or your bookkeeper does then QBO payroll services is quick and easy to integrate.

 

Pay daysAll the above payroll software companies have their own individual qualities that will help any business owner or bookkeeper with payroll. Research a few of them. Pick up the phone and call the companies and see which one you feel will work for your business. You also have to feel comfortable with whichever payroll company you choose. So, keep that in mind while doing your research.

 

I hope my blog has been of help and that you have a clearer guide as to which payroll software company to look into. If you have any questions or want to outsource your payroll, please contact me at https://rcpenner.com/bookkeeping

 

Thank you for taking the time to read my article.

 

Don’t miss out on future blogs. Sign up to get them directly in your inbox hot off the press each week.

 

Sincerely

Rebecca C Penner CPA, CGA

https://rcpenner.com/contact

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4 Ways to Ensure Tax Compliance

 

To be certain, you are in compliance when dealing with your taxes, the CRA requires you to keep hold of all supporting documentation. This consists of any receipts, documents, and tax forms, for six years from the end of the last tax year to which they relate.

 

We providE expert tax return accounting and Bookkeeping Services

 Rebecca C Penner CPA, CGAhttps://rcpenner.com/contact

 

 

To help with keeping all your files in order and safe from being accidentally thrown out. It is a good idea to scan your documents and keep them on a separate hard drive. Or to keep all your documents in a cloud-based storage such as Hubdoc. Hubdoc is an online tool that can also help you with your bookkeeping. This will allow you to say goodbye to old shoe boxes full of receipts and hello to 2022 and cloud-based storage. If you’re interested in finding out more about Hubdoc click the link: https://www.hubdoc.com/

 

 

 

What is Canadian Tax compliance?

 

Canada’s tax system is based on self-assessment. The CRA uses the self- assessment system to collect income tax. This means the tax obligation of a taxpayer is paid during the assessment year before the income tax returns are filed.

 

For self - assessment to work, society as a whole must fully support it. This ensures fairness to all.

 

What are the 4 determinants of Ensuring Tax Compliance?

 

1. Tax Awareness – You may think that this is something that every person should know. But what if you are a recent immigrant to Canada. How do you even know what questions to ask if you don’t understand the tax law? If you are new to Canada please click the link provided here to find out what you need to do:https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html

 

 

2. Tax Fairness – This means that a governments system of taxation must be equitable to all of its citizens.

 

3. Tax Complexity – Tax professionals relate tax complexity mainly to the ambiguity and excessive changes in tax laws. Also, with the need to comply.

 

4. Tax Information – Means documentation or information pertaining to your tax status once filed.

 

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Rebecca C Penner CPA, CGAhttps://rcpenner.com/contact

 

The importance of tax compliance with tax laws is to ensure the system keeps working for all. Tax compliance also ensures the ongoing support of many government programs and services. If all governments keep the tax rules as clear as possible then everyone wins. If a country has a complicated tax system, it is generally associated with high tax evasion. Which in the long run doesn’t help anyone.

 

As always thank you for taking the time to read my blog.

 

If you have any questions, please don’t hesitate to reach out.

Sincerely,

Rebecca C Penner CPA, CGA

 

rebecca

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TFSAS vs RRSPS

 

RRSPS vs TFSAS what are they and what are the differences that you should be aware of before choosing either one. Which one should you be contributing to each year and why?

 

A Registered Retirement Savings Plan (RRSP) is a savings plan that is registered with the Canadian Federal Government. It is a savings plan that allows you to contribute for your retirement. An RRSP allows you to defer your taxes until a later date. It is not a Tax-Free account. You will be taxed when you withdraw funds from an RRSP account.

 

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Rebecca C Penner CPA, CGA https://rcpenner.com/contact

 

A TFSA account is a Tax – Free savings account that you can contribute to and not have to pay tax on the amount that you withdraw. Because of the high tax implications with an RRSP, I wouldn’t recommend contributing to an RRSP 100% of the time. Unless your income is on the higher end.

Let’s take a look at 4 TFSA tips:

1. Planning for your retirement – No matter what age you are, be that in your 20s or 50s, planning for when you retire is an important part of being financially responsible. Determine what kind of lifestyle you want to live in your retirement years and set goals accordingly. Your financial advisor can help you with this.

2. There is a limit amount that you can contribute each year to your TFSA account. The limit for 2021 was $6000. Which is the same for this year 2022.

3. Contributing to your TFSA account as early as possible gives your money more time to benefit from tax-sheltered growth.

4. Unused contribution room can be carried forward to use in future years.

 

Screen Shot 2022 04 15 at 7.51.27 AMRebecca C Penner CPA, CGAhttps://rcpenner.com/contact

 

How can you make your TFSA account successful? In general, you should aim to contribute to your TFSA each year. Ideally if you can start contributing in your early 20s you could end up with a very comfortable retirement later on.

When you’re in your 50s a good gauge for assessing your retirement, readiness is to have saved seven times your annual income by the age of 55. So, the earlier you start your investment journey the earlier you will be able to retire and enjoy your life on your terms.

A good place to start if you are in need of financial advice is to contact a financial advisor. Your accountant would be able to help you with this and point you in the right direction.

Thank you for taking the time to read my article.

Don’t miss out on future blogs. Sign up to get them directly to your email inbox hot off the press.

Sincerely

Rebecca C Penner CPA, CGA

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